Tether Protested Bloomberg’s Allegations of Misuse of Company’s Stocks
The largest issuer of stablecoins by market capitalization, Tether (USDT), denied a statement by a Bloomberg journalist about using the company’s reserves to invest and provide loans for cryptocurrency.
Bloomberg journalist Zeke Faux said on Thursday that Tether’s chief financial officer, Giancarlo Devasini, used the company’s reserves for investments, which contradicts Tether’s public position that holdings have always been fully collateralized. In addition, Faux claimed that Tether has invested in Chinese firms and issued billions of dollars in cryptocurrency-backed loans.
Tether called the report an attempt to undermine the company’s reputation with baseless claims based on misinformation. The stablecoin issuer questioned the credibility of Fox’s sources and stated that its USDT tokens are fully collateralized, as documented in quarterly reports.